Why is India staring at LPG shortage?

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With LPG shortage hitting day-to-day beingness successful India, information suggest portion the federation opted for a melodramatic surge successful LPG use, particularly among mediocre households, driven by imports determination was nary program to boost long-term, strategical LPG reserves successful parallel.

With much than 85% of each of India’s imports having to transverse Strait of Hormuz to scope the nation’s shores and constricted back-up storage, the disruption has deed rapidly dissimilar successful the lawsuit of car substance wherever strategical reserves of crude lipid and products are adjacent to 2 months of consumption.

The Indian LPG strategy is designed for operational flow, not stockpiling. And determination are nary factual proposals presently to summation ample underground retention either.

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The International Energy Agency (IEA) has flagged the deficiency of specified retention arsenic an infrastructural weakness successful India.

Surge successful home gas

IEA figures amusement that India’s LPG imports accrued threefold from 2011-12 to 2024-25 to immoderate 20 cardinal tonne. Imports represent immoderate 60% of India’s needs. India’s import dependency has accrued from 47% successful 2015 to the existent levels.

This year, imports had crossed 18 cardinal tonne successful January. India’s full LPG depletion a period is immoderate 3 cardinal tonne making it the second-largest user of LPG successful the world. But, the full retention capableness tin provender little than fractional of that monthly request and astir each of it successful tanks astatine import terminals specified arsenic Ennore.

In presumption of semipermanent storage, India has 2 underground caverns for LPG – Mangaluru and Vishakapatnam with a full retention capableness of 1.4 lakh tonne. While Vishakapattinam retention was commissioned successful 2007, lone 1 has been commissioned since the ramping up of LPG depletion started – Mangaluru with 80,000 metric tonne, which is conscionable a day’s consumption. The full underground retention amounts to 1.4 lakh tonne oregon equivalent to little than 2 days of consumption.

India’s regular LPG depletion stands astatine immoderate 80,000 tonne now. More than 85% of it goes to households.

The state has 33 crore home LPG connections retired of which immoderate 10 crore were added since 2017 done the done Pradhan Mantri Ujjwala Yojana (PMUY). The PMUY strategy sought to connection cleanable cooking state to mediocre radical arsenic well, freeing women from the drudgery of firewood-based chulhas, cow-dung and kerosene stoves. The strategy gave deposit-free LPG connections to big women from mediocre households and subsidised the acquisition arsenic well. The surge successful Indian LPG depletion arsenic good arsenic import dependency is attributed to this scheme.

The MoPNG, successful its request for grants successful 2025 successful Parliament, said determination were nary plans for constructing further caverns, too the two. The Mangaluru cavern became operational successful 2025.

India signed an LPG import statement with the U.S. successful February for 2.2 cardinal tonne per twelvemonth but U.S. cargoes instrumentality immoderate 45 days to scope India dissimilar the Persian Gulf cargoes.

Underground caverns an answer

Europe tin store astir 25% of full yearly state consumption.. European underground retention capableness equals to astir 150% of yearly LNG import volume, says Christoph Halser, Senior Analyst, Gas & LNG Research, Rystad Energy, an vigor probe and concern quality steadfast based successful Norway.

“Unlike for oil, wherever a mandate for 90 days exigency banal equivalent exists, European countries bash not person a strategical government-controlled state reserve and are not required to by the EU. The EU imposed retention filling targets for nationalist retention facilities archetypal successful 2022, pursuing the outbreak of warfare successful Ukraine. These mandate subordinate countries to scope 90% filling levels earlier the winter, with exceptions for marketplace disruptions and method constraints.” adds Mr. Halser.

India tin beryllium broadly divided into 3 geological zones applicable for specified state storage. The astir proven is the Peninsular Shield—the Archean cratonic basement of granite, gneiss and charnockite underlying astir 60% of peninsular India. Both operational LPG state caverns beryllium connected this rock.

At Visakhapatnam, the retention cavern lies 162 to 196 metre beneath crushed level successful Precambrian gneiss, utilizing the hydraulic containment principle.

At Mangaluru, the big stone is granitic gneiss, with the level astatine 141 metre beneath mean oversea level. The engineering is proven. The stone is cooperative.

The 2nd portion is the Deccan Traps—the immense basaltic plateau covering immoderate 5,00,000 quadrate kilometre of occidental and cardinal India. For retention purposes, the traps contiguous challenges. Engineers India Limited, designing a caller LPG installation connected the westbound coast, has encountered difficulties.

The 3rd portion is the brackish formations of Rajasthan’s Bikaner–Barmer belt. These halite deposits tin beryllium utilized arsenic cavern storage. Salt caverns are cheaper and faster to construct, people impermeable, and susceptible of accelerated injection and withdrawal. A refinery is nether operation astatine Barmer and crude pipelines traverses the region. EIL has signed a concern with Germany’s DEEP for brackish cavern knowhow.

A 4th option—depleted state reservoirs successful the Krishna–Godavari, Cambay and Mumbai offshore basins—is nether study.

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